Nexo claims $3 billion from Bulgaria over abusive investigations: Antoine Trenchev denounces political repression

Crypto lender Nexo has filed an arbitration claim seeking $3 billion in damages against the Republic of Bulgaria. According to an official statement, the platform denounces “illegal measures motivated by political considerations,” including “unfounded and oppressive criminal investigations.” Antoine Trenchev, a key figure at Nexo, criticized this approach, calling it discriminatory against the cryptocurrency sector.

Unsubstantiated Investigations Against Nexo

The Bulgarian prosecutor’s office closed its preliminary investigation into Nexo in December 2023 due to lack of evidence of criminal activity. The investigations focused on money laundering suspicions, but no conclusive evidence was found. This closure came after a period of widespread crackdown on the crypto industry, notably following the collapse of FTX and the trust crises that marked the second half of 2022.

Despite this closure, Antoine Trenchev emphasizes that damages have already impacted the company. The platform states that these baseless investigations have harmed its brand, damaged its reputation in the industry, and caused it to lose strategic business opportunities.

Major Impact: IPO Hindered

Nexo had been considering an initial public offering (IPO) in the United States, a crucial step for the platform’s international growth. The unfounded Bulgarian investigations have significantly complicated this goal. The combination of government repression and negative media coverage has heightened the perceived regulatory risk around Nexo, discouraging potential institutional investors.

A Complaint Filed with ICSID

The claim has been submitted to the International Centre for Settlement of Investment Disputes (ICSID), the arbitration body of the World Bank based in Washington. This move signals an escalation in the conflict: Nexo is no longer just challenging Bulgarian decisions at the national level but is turning to an international institution to protect its interests.

This action reflects growing tension between government authorities and the digital assets industry. While some states tighten their regulatory control, major industry players like Nexo are resorting to investor protection mechanisms to defend their operations and development prospects.